evaluation of community improvement plan incentives · pdf file ·...
TRANSCRIPT
Evaluation of Community
Improvement Plan Incentives
Public Engagement Open House
Tuesday, June 7, 2016
Wednesday, June 8, 2016
Meeting Agenda (June 7-8 Meetings)
Didn’t We Do this in 2014? (Recap)
Why We Are Here: Council Resolution of February 16, 2016
Types of Financial Incentives (Where’s the money?)
What We Are Actually Talking About Existing Community Improvement Plans (related Financial Incentives)
DC Program vs. Others
Evaluation New and Existing CIPs and Financial Incentives
Review criteria Indicators of Success Caps Potential Savings
Next Steps Report to Planning and Environment Committee (August/November 2016) Council Decision by 2017
Didn’t We Do This in 2014?
Council Resolution - June 10, 2014
Due to changes in provincial legislation the City was required to review and make modifications to Development Charge Grant Programs.
That City was able to adjust the DC programs and bring forward the DC Bylaw without causing any interruptions to services.
Changes Made in 2014
Amend EXISTING Development Charge Grant Programs within:- Downtown Community Improvement Plan Area,- Old East Village Community Improvement Plan Area, and- SoHo Community Improvement Plan Area
and also
Introduced a NEW Community Improvement Plan for Industrial land uses, that included:- Development Charge Grant, and - Industrial Corridor Enhancement Grant
What Are We Here to Talk About?
Clauses A – D: Review Existing and Proposed New CIPs (and related financial programs) as well as any money savings changes that could be made
Clauses E: Completed in 2015 as part of Multi-Year Budget Process
Clauses F: Being undertaken as a separate policy review process by Finance and Corporate Services
By End of 2016
By End of 2016
By End of 2016
By End of 2016
End of 2016
*
Types of Financial Incentives through CIPs
Programs Examples Description
Loans- Upgrade to Building Code- Facade Improvement- Non-street Façade Improvement Loan
No interest, 10 year pay back to the City, Capped (percentage of cost of improvements set to a max.), Low cost
Tax Grant
- Brownfield Tax Increment Equivalent Grant- Rehabilitation & Redevelopment Grant- Heritage Tax Increment Grant - Airport Tax Increment Grant
Tied to increase Tax (related to improvement), New taxes paid, grant provided for a set proportion of the tax increase, city received no less than prior to improvement, Low cost
Other Grants
- Forgivable Upgrade to Building Code - Forgivable Facade Improvement - Awning, Signage & Decorative Lighting Grant - Tax Holiday Grant- Industrial Corridor Enhancement Grant
Typically tied to Small Scale propertyimprovement Projects or studies, Capped, Moderate cost
DC Grants
- Industrial - Residential- Brownfield- Heritage Development Charge Equivalent Grant
Widely used for a variety Projects,Not capped for IND/RES/AIR, Capped for HER/BRO based on costs of site improvement/remediation – value of grants determined at Building Permit Stage, High cost
DC ProgramsCost
(2006 to 2015)
# of Approved
Applications
Downtown $5.7 million 3
Old East Village $6.3 million 2
Industrial$813,000
(only 2015)
4
Total $12.81 million 9
DC Programs vs. Other Programs
Other ProgramsCost
(2006 to 2015)
# of Approved
Applications
Façade Improvement
Loans (DT, OEV, SoHo)$1 million 51
Upgrade to B.C. Loans (DT,
OEV, SoHo)$3.2 million 92
Non-Street FI Loans (DT, OEV) $220,000 12
Rehab and Redevelop Tax
Grant (DT, OEV)$6 million 19
Other DT, OEV GrantsApprox.
$200,000
Approx.
40
Brownfield CIP Grants $618,000 15
Airport CIP Grants $330,000 2
Heritage CIP Grants $0 0
Industrial Lands CIP Grants
(non DC)$0 0
Total $11.5 million 231
What Are We Here to Talk About?
CIPs Financial Incentive Programs Offered Discontinued CIP ProgramsApproved but not funded
CIP Programs
Downtown
Last
Mile
Grant
Façade
Improvement
Loan
Upgrade
to Building
Code Loan
Tax Grant
ProgramDC Grant
Forgivable
Façade
Improvement
Loan
Forgivable
Upgrade to
Building Code
Loan
Non-street
Façade
Improvement
Loan
Awning, Signage
& Decorative
Lighting Grant
Tax Holiday
Grant
Heritage
Assessment
Grant
Heritage
Improvement
Grant - -
Old East
VillageFaçade Improvement
Upgrade
to Building
Code
Tax Grant
ProgramDC Grant
Forgivable
Façade
Improvement
Forgivable
Upgrade to
Building Code
Non-street
Façade
Improvement
Loan
Awning, Signage
& Decorative
Lighting Grant
Tax Holiday
Grant
Heritage
Assessment
Grant
Heritage
Improvement
Grant
- -
SoHo Façade ImprovementUpgrade to Building
Code - - - - - - - Tax Grant
ProgramDC Grant
Heritage Tax Increment GrantDevelopment Charge
Equivalent Grant - - - - - - - - -
Airport
AreaTax Increment Grant - - - - - - - - -
BrownfieldTax Increment
Equivalent Grant
Contamination
Assessment
Study Grant
DEV
Charge
Rebate
Property
Tax
Assistance
Program
- - - - - - - - -
Industrial
LandsDevelopment Charge Grant - - - - - - - -
Industrial
Corridor
Enhancement
Grant
-
Presently the City of London has 7 Community Improvement Programs through which a variety of Financial Incentives have been funded:
Existing CIPs & Financial Incentives
Existing Incentives – FAÇADE IMPROVEMENT LOAN
2006 to 2015 Total Downtown Old East Village SoHo
Façade Loans Issued 51 35 16 0
Value of Loans Issued $983,631 $692,900 $290,731 $0
Construction Value $3,033,221 $2,282,188 $751,034 $0
Construction/Loan Value 3.08 3.29 2.58 -
664 Dundas Street
Existing Incentives – UPGRADE TO CODE LOAN
2006 to 2015 Total Downtown Old East Village SoHo
Upgrade Loans Issued 92 61 31 0
Value of Loans Issued $3,236,695 $2,161,204 $1,075,491 $0
Construction Value $8,876,405 $6,233,667 $2,642,738 $0
Construction/Loan Value 2.74 2.88 2.46 -
192 &194Dundas Street
2006 to 2015 Total Downtown Old East Village
Grant Applications Approved 19 14 5
Value of Grants Issued To Date $6,094,613 $5,962,527 $132,086
Residential Units Created 1,453 1,381 72
Remaining Value of the 19 Grants To Be Paid
$1,545,699 $1,361,192 $184,507
Existing – REHAB & REDEVELOPMENT (TAX) GRANT
637 Dundas Street 423 Richmond Street
Residential Development Charges Grant
2006 to 2015 Total Downtown Old East Village
Number of Grants 5 3 2
Value of Grants $11,975,980 $5,674,099 $6,301,881
Residential Units Created 1,305 693 612
700 King Street 71 King Street
Existing– BROWNFIELD DEVELOPMENT CHARGE REBATE
2006 to 2015 Total
Grant Applications Approved 2
Value of Grants Issued To Date $162,000
Residential Units Created 52
Remaining Value of the Grants To Be Paid $275,000
570 Nelson Street
2006 to 2015 Total
Grant Applications Approved 1
Value of Grants Issued To Date $361,790
Residential Units Created 600
Remaining Value of the Grants To Be Paid $0
Existing – BROWNFIELD TAX INCREMENT EQUI. GRANT
700 King Street, OEV CIP
2006 to 2015 Total
Grant Applications Approved 12
Value of Grants Issued To Date $93,970
Residential Units Created N/A
Remaining Value of the Grants To Be Paid $0
Existing – BROWNFIELD CONTAMINATION STUDY GRANT
1156 Dundas Street –Former McCormick’s Factory
Existing Incentives – BROWNFIELD TAX ASSISTANCE
2006 to 2015 Total
City has not processed an application to date 0
2006 to 2015 Total
Grant Applications Approved 2
Value of Grants Issued To Date $328,924
Residential Units Created N/A
Remaining Value of the Grants To Be Paid approx. $870,189
Existing Incentives – AIRPORT TAX INCREMENT GRANT
2006 to 2015 Total
Grant Applications Approved 1
Value of Grants Issued To Date $0
Residential Units Created 11
Remaining Value of the Grants To Be Paid $112,100 (estimated)
Existing Incentives – HERITAGE TAX INCREMENT GRANT
1576 Richmond Street Conceptual Rendering
2006 to 2015 Total
Grant Applications Approved 1
Value of Grants Issued To Date $0
Residential Units Created 11
Remaining Value of the Grants To Be Paid $27,722
Existing – HERITAGE DEVELOPMENT CHARGE GRANT
1576 Richmond Street– Heritage CIP application
2014 to 2015 Total
Grant Applications Approved 0
Value of Grants Issued To Date $0
Potential – SOHO GRANTS
Colborne Building– Part of OVH Lands –
Potential New Applications:- Heritage DC- SOHO Residential DC (unfunded)- SOHO DC (unfunded)
*2006 to 2015 Total
City has not processed an application to date 0
Existing – INDUSTRIAL CORR. ENHANCEMENT GRANT
This program has been in effect since January 1, 2016 but has not been funded
View from 401 near Highbury Ave
2015
Value of Grants Issued $0.81 million
Existing – INDUSTRIAL DEVELOPMENT CHARGE GRANT
Dr. Oetker (pre-2015)
Columbia Sportswear(pre-2015)
DC ProgramsCost
(2006 to 2015)
# of Approved
Applications
Downtown $5.7 million 3
Old East Village $6.3 million 2
Industrial$813,000
(only 2015)
4
Total $12.81 million 9
DC Programs vs. Other Programs
Other ProgramsCost
(2006 to 2015)
# of Approved
Applications
Façade Improvement
Loans (DT, OEV, SoHo)$1 million 51
Upgrade to B.C. Loans (DT,
OEV, SoHo)$3.2 million 92
Non-Street FI Loans (DT, OEV) $220,000 12
Rehab and Redevelop Tax
Grant (DT, OEV)$6 million 19
Other DT, OEV GrantsApprox.
$200,000
Approx.
40
Brownfield CIP Grants $618,000 15
Airport CIP Grants $330,000 2
Heritage CIP Grants $0 0
Industrial Lands CIP Grants
(non DC)$0 0
Total $11.5 million 231
What Are We Here to Talk About?
Evaluation of CIPs & Financial Incentives
Review Criteria (staff have undertaken this exercise internally & seeking comments) • Proportion of CIP Funding?• Application Volume? • Sustainability based on funding source?• Link to Strategic Plans (Strategic Alignment)? • Are the CIP objectives being achieved?• Impact of reduced CIP funding?
Indicators of Success (Comments on Indicators are being sought)• Will reflect the specific Community Improvement Plan
• Heritage• Airport• Brownfield• Downtown/SoHo/Old East Village CIPs are similar
Potential Indicators of SuccessDowntown, Old East Village, SoHo and Proposed Community Improvement Plans
Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive
The residential neighbourhood plays an important within the context of the entire City
Minimum of 5% of London’s population resides within the Downtown’s boundaries.
Downtown Bldg Code Loans Tax Increment Grant DC Grants
The neighbourhood can support a supermarket
Minimum population sufficient to support a community scale supermarket
Downtown Old East Village
Bldg Code Loans Tax Increment Grant DC Grants
Residential growth is strong for a protracted period
Minimum of 750 residential units are constructed within a consecutive 5-year period
Downtown Bldg Code Loans Tax Increment Grant DC Grants
The neighbourhood caters to a wide array of socio-economic groups
Minimum of 15% of the area’s population fits within each of the City’s four household income quartiles
Downtown Old East Village SoHo
Bldg Code Loans Tax Increment Grant DC Grants
The neighbourhood provides a significant stock of affordable housing
Minimum 25% of all rental housing is affordable to the 40th percentile of city-wide incomes
Downtown Old East Village SoHo
Bldg Code Loans Tax Increment Grant DC Grants
Vacancies are low and storefronts are well occupied
Maximum 5% vacancy rate on ground level commercial spaces
Downtown Old East Village SoHo
Façade Loans Bldg Code Loans Tax Increment Grant DC Grants
Quality uses on key storefronts Minimum 75% of ground floor uses on key commercial streets are targeted uses
Downtown Old East Village SoHo
Façade Loans Bldg Code Loans
Active streets Minimum hourly pedestrian counts on key commercial streets on a selected Friday during the month of September for the following periods (1) 8-9AM; (2) Noon-1PM; (3) 5-6PM and (4) 8-9PM.
Downtown Old East Village SoHo
Façade Loans Bldg Code Loans Tax Increment Grant DC Grants
Quality facades and storefronts Minimum 80% façade and storefront graded A or B Condition (City rating)
Downtown Old East Village SoHo
Façade Loans
Potential Indicators of SuccessAirport Area and Proposed Community Improvement Plans
Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive
The aerospace industry plays an important within the context of employment for the entire City
Minimum of 5% of London’s population employed within the Airport Area’s boundaries
Long term stability and vitality of area
Aerospace industry growth is strong for a protracted period
Airport Area experiences high levels of Redevelopment, Rehabilitation and/or Renovation
Encourages the coordination of municipal expenditure and planning and development activity
Vacancies are low and lands within the Airport Area are well occupied
Targeted uses in occupyingindustrial/commercial lands
Active streets (min. land use problems associated with under-utilization of land that detracts from viability)??
Other???
Potential Indicators of SuccessBrownfield and Proposed Community Improvement Plans
Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive
Brownfields plays an important within the context of development for the entire City
Minimum of 5% of London’s development occurs within the a Brownfield Site.
Long term stability and vitality of area surround Brownfield Site
Stimulating private reinvestment activity in Brownfields is strong for a protracted period
Brownfields experiences high levels of Redevelopment, Rehabilitation and/or Renovation
Encourages the coordination of municipal expenditure and planning and development activityLow rate of Brownfield Sites with the entire City
Targeted uses in occupyingindustrial/commercial lands
Reduced detrimental effects associated with contaminated lands
Other???
Potential Indicators of SuccessHeritage and Proposed Community Improvement Plans
Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive
Retention of heritage structures plays an important within the context of employment for the entire CityLong term stability and identity of our City
City wide heritage retention is strong for a protracted period
High levels of retention and rehabilitation of heritage resources
Encourages the coordination of municipal expenditure and planning and development activityVacancies are low and lands within the Heritage Conservation Districts and properties are well occupied
Encourage the designation of significant heritage resources
Create a sense of place and ensure that our history is retained
Quality structures and facades
Potential Indicators of SuccessIndustrial Lands and Proposed Community Improvement Plans
Potential Indicator of Success Potential Measure Area to Use Indicator Applicable Incentive
Industrial Uses play an important within the context of employmentfor the entire CityEconomic development and prosperity in London (Increase the long-term industrial assessment base and industrial land property tax revenues)Industrial growth is strong for a protracted period
Industrial land uses experience high levels of Redevelopment, Rehabilitation and/or Renovation
Encourages the coordination of municipal expenditure and planning and development activity(adequate supply of serviced and appropriately sized and located industrial lands)
Vacancies are low and lands within the Industrial Land Use (Designations) are well occupied
Targeted uses in occupyingindustrial/commercial lands
Ensure that growth related capital costs are recovered from revenues generated by new development
Increase and retaining existing employment on industrial lands
Potential for Savings
Are incentives aligning well with strategic goals?
Are all existing incentives required?
How do existing incentives compare to other incentives that have been proposed from a strategic perspective?
Can existing incentives be tweaked and still achieve strategic goals?
Is there an opportunity for cost savings?
Can cost savings be used, in whole or in part, to fund any additional incentives?
Other?
What Are We Here to Talk About?
Potential Program Changes
Council Resolution – Potential considerations for staff to evaluate (February 16, 2016)
i. instituting a $10 million cap on the funding assigned to the Residential Development Charges Rebate Grant Program, between the years 2017 to 2019; it being noted that if the $10 million cap is reached (ie. grants have been issued at any time between 2017 and 2019 totalling $10 million), additional projects, or portions of projects, constructed in that period would be required to pay development charges and no grant would be offered; it being further noted that for the year 2020 and beyond, a similar cap or a program of stepping down the amount of the development charge rebate grant should be considered; and,
ii. taking a more targeted approach to the development charges grant for industrial uses, such that the program aligns with the attraction of key industrial sectors and those types of industrial uses that generate the highest levels of employment; it being noted that a stepping down of the development charge grant should also be considered;
Forecasted Draw Downs – Core Area Programs
What Are We Here to Talk About?
Potential NEW CIPs & Financial Incentive ProgramsIndicator of Success Measure Area to Use Indicator Applicable Incentive
a new incentive program stemming from the Hamilton Road Community Improvement Plan process;
a new incentive program stemming from the Lambeth Community Improvement Plan process;
the expansion of the Downtown Community Improvement Area to align with the new boundaries of the Downtown London Business Improvement Area; a new incentive program granting a development charge rebate for new buildings, or additions, to accommodate publicly accessible sports and recreation services;
a new incentive program granting a development charge rebate for new buildings, or additions, to accommodate private, or not-for-profit educational facilities, including music schools;
a new incentive program for environmentally sustainable buildings or communities;
a new incentive program providing development charge rebates for new buildings, or additions, to accommodate small businesses;
funding the existing Brownfield Contamination Assessment Study Grants incentive; and,
fund the existing Industrial Corridor Enhancement Program to help industrial property owners improve their properties where such properties are visible from important corridors such as the Veterans Memorial Parkway or Highway 401;